Investment Planning

Investment planning relies on core principles that have been developed and tested over the past century, including:

  • Asset allocation provides the foundation to managing portfolio risk and return
  • No single money management firm can be all things to all people
  • An important role for your financial planner is to be your objective advocate

Your financial planner should ask you the right questions to lay a solid foundation for your investment plan. This begins with reviewing your current financial situation in detail to better understand your short- and long-term objectives, such as liquidity requirements, risk tolerance, return objectives and income requirements. Working with you, this information can be used to help clearly define your goals and expectations.

Your goal should be to maximize your investment returns within the context of your financial goals, while minimizing the level of risk. To assist in this step of the process, your financial planner may utilize sophisticated modeling tools that illustrate the future implications of different portfolio scenarios related to your financial situation, assets and cash flow needs before arriving at your optimal allocation.

You should look for a financial planner who has access to a broad universe of premier institutional money management firms and mutual fund companies through an objective due diligence process. By utilizing a series of statistical screening and in-depth interviews, your planner can work with you to ultimately select investment options that best fit within the context of your overall investment strategy.

This is an ongoing process. Your financial planner should regularly assess your evolving needs, investment recommendations and market events. This routine process helps ensure your plan and their resources are working to your best advantage.

There are risks and guidelines associated with investing. Working with a financial planner does not guarantee you positive results, but many people consider it helpful to receive investment advice from a financial professional.